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Full text of "Annual Evaluation Report Fiscal Year 1984"

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C.    Costs, Benefits, and Effectiveness

New Loan Commitments: In FYs 1982 through 1985, $40 million was directed
by Congress each year to be made available for new loans.

Table 1 shows the distribution of loan commitments for 1982 through 1984.
These commitments were supported with the resources of the program's
revolving fund and required no appropriation. Each year approximately
three-quarters of the funds were committed for construction while 25 percent
was committed for energy conservation projects.

Table 1

Loan Commitments of the College Housing Program
FY 1982 to FY 1984

Type of




Fiscal Year Commitments
	Fiscal Year Commitments (in thousands)
	Fiscal Year Average Loan (in thousands)

1982 1983 1984
	1982          1983          1984
	1982        1983        1984

14     13      11 5      15      18
	$30,043    $29,978    $30,000 $ 9,957    $10,022    $10,000
	$2,145    $2,306    $2,727 $1,991    $   668    $    556

19      28      29
	$40,000    $40,000    $40,000

Source: See E.I. below

Indirect or Off-Budget Costs:

The Federal Government absorbs the difference
percent interest paid by institutions on

between theapproximately3

their college housing loans and the prevailing interest rate for Treasury
borrowing. Therefore, most of this program's cost is off-budget and does
not appear as a direct expense under the program account. The off-budget
cost in FY 1984 approximated $219 million. This amount is slowly decreasing
because the level of outstanding loans in the portfolio is decreasing.
The account, however, realizes a small income since it reimburses the
Treasury at a rate of only 2.75 percent.

Servicing Existing Commitments:

Full amortization of the principal liabil-

ity ($451.504 million) on GNMA participation certificates, marketed to the
public in 1967-68, must be completed by FY 1988. Institutional loan
repayments must be used largely for this purpose, rather than for making
new loan commitments. (See Table 2).rcent minimum set-aside provision for those Institutions